Ridley Corporation Limited · ASX:RIC
Ridley — Investor Presentation (February 2005)
8 slides from Ridley's investor presentation, Feb 14, 2005
Slide 1: Transaction Review
Transacti 25 Sweetlix LIVESTOCK SUPPLEMENT SYSTEM RIDLEY
Slide 2: Business Description
Business Description • Products: 105,000 tons of Pressed & Chemical (poured) blocks, and Loose mineral supplements • Plants: Alabama, Texas & Indiana • Brands: “Sweetlix”,“VMS”, & “Futurity” well regarded • Licenses: New Animal Drug Applications (NADAs) for the production of medicated blocks • RBO c
Slide 3: Strategic Rationale
Strategic Rationale • Product Offering: Ability to supply a greater range of supplement products to the combined customer base • Market Position: Consolidates Ridley as the leading ‘free choice supplements’ provider in North America • Marketing: Sweetlix will benefit from RBO’s marketing focus on th
Slide 4: Sweetlix Locations
Sweetlix Locations Syracuse Fort Worth Montgomery Sweetlix Facilities
Slide 5: Increased Geographic Spread
Increased Geographic Spread W hitewood W orthington Stockton Syracuse Fort Worth Montgomery Buffalo Sweetlix Facilities RBO Facilities
Slide 6: Transaction details
Transaction details • Acquired: assets of Sweetlix LLC 30th July 2004. • Price: US$16.7 m FY 2005 * FY 2006 Current Year Projection Tons ('000) 103,706 115,040 Sales US $m 34.0 40.0 Gross Margin US $m 10.3 12.2 EBIT US $m 2.2 3.2 - multiple 7.7 5.3 EBITDA US $m 3.0 4.3 - multiple 5.6 3.9 * Annualise
Slide 7: Current Performance
Current Performance • Business Integration: progressing to plan • Cost savings: up to US$1.0million of annualised savings to be achieved: ¾ SLC Office closure ¾ Staff Consolidation ¾ Raw materials • Hurricanes: Impacted production & logistics • Forecast: EBITDA FY 2005 US$3.0 million
Slide 8: Outlook
Outlook • Sales Growth: Drive to utilise the benefits of a broader product range with greater market reach • New Products: Planning to add innovative product offerings to Sweetlix® existing product lines & grow customer base. • Cost management: Ensure that all cost synergies are achieved • Projectio